What’s the outlook for the Webjet (ASX:WEB) share price?

Where is the ASX travel share headed in FY2022?
The post What’s the outlook for the Webjet (ASX:WEB) share price? appeared first on The Motley Fool Australia. –

The Webjet Limited (ASX: WEB) share price is in focus this month. Investors are keeping an eye on the ASX travel share amid the August reporting season. That’s despite Webjet not expecting to report its half-year results until November 2021.

For those interested in the Webjet share price and its outlook, here are a few things to keep in mind.

What’s in store for the Webjet share price?

Especially in times like these, it can pay to focus on a company’s long-term prospects rather than the immediate headwinds.

Let’s start with what analysts and brokers are saying about Webjet at the moment. Arguably, the most information analysts ever have about a company is following the release of its half or full-year results.

Winding the clock back to 20 May 2021, Webjet had just released its full-year earnings. Goldman Sachs reiterated its buy rating with a revised price target of $6.40 per share despite Webjet’s revenue falling 9.7% below expectations.

A broker note in mid-July reiterated that $6.40 price target despite the tough operating environment. The broker also noted the potential for recent underperformance to create a favourable buying opportunity for buy-and-hold investors.

However, the Webjet share price closed at $4.95 on Thursday afternoon. That means the ASX travel share has edged lower in 2021 but remains up 64.5% in the last 12 months.

Other travel shares that were smashed throughout 2020 have also rebounded strongly after coronavirus restrictions took hold of the industry and economy last year.

Webjet hasn’t had any price-sensitive ASX announcements since its 19 May 2021 full-year results. That means investors are trying to assess the travel operator’s earnings prospects right now.

Obviously, continued COVID-19 lockdowns are not good for business in the travel sector. Disrupted travel, both domestically and internationally, continue to mean companies like Webjet are operating below capacity.

Large swathes of the population in lockdown has seen the Webjet share price seesaw throughout July, partially offset by hopes of increased vaccination rates.

What lies ahead in FY2022?

Investors will be hoping current restrictions ease and the tourism sector rebounds strongly on the back of pent-up demand. Achieving vaccination milestones is an important step for confidence that the travel industry will be able to operate without major disruption going forward.

Signs of strong activity, such as high traffic numbers from Sydney Airport Holdings Pty Ltd (ASX: SYD), could provide a boost for the Webjet share price.

Investors will be hoping for further indications of where the ASX travel share is going ahead of the November half-year result.

The post What’s the outlook for the Webjet (ASX:WEB) share price? appeared first on The Motley Fool Australia.

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More reading

If you’d invested $2,000 in Webjet (ASX:WEB) shares 10 years ago, here’s what it would be worth now
Here’s why the Webjet (ASX:WEB) share price moved in circles during July
Webjet (ASX:WEB) share price slumps on extended QLD lockdown
These are the 10 most shorted ASX shares

Own Webjet (ASX:WEB) shares? Here’s what to look at during reporting season

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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